TPG Telecom Limited

TPG Telecom Limited

TPG Telecom Limited provides telecoms and multimedia services in the Australian marketplace. TPG acquired local ISP iiNet. TPG is now Australias second-biggest provider of fixed-line broadband in Australia with over 1.7 million customers. Services including voice, internet and data solutions are provided to a customer base ranging from the consumer market through to small and medium enterprises, corporate and government sectors. The company also owns a cloud-hosting company and the PIPE network infrastructure that includes the third largest domestic dark-fibre operation and the submarine cable network to Guam, Asia and the United States.

The company is delivering an extensive Fibre-to-the-Basement (FttB) service to apartment buildings in capital cities, offering broadband at 100Mb/s at a price which undercuts existing offers from rival ISPs. TPG has also secured spectrum in the 2.5GHz band to bolster its wireless broadband capabilities, and has committed to investing in additional capacity on the subsea cable linking to New Zealand and the US West Coast.

The company has the largest data network and voice network after Telstra, the largest fully converged voice, video and data IP-based access network in regional Australia, and the largest voice-enabled IP network. The company's capabilities and reach were enhanced following its $450 million acquisition of AAPT's wholesale and business services from Telecom New Zealand.

TPG created a new retail arm to sell its wholesale fibre-to-the-basement product to residential customers.

TPG has made a bold move to become the fourth mobile operator in Australia. TPG announced that it would build a mobile network in Australia for an additional $600 million to its 700MHz spectrum purchase for network rollout capex over a three year period to achieve 80% population coverage. Initial sites are targeted for mid / late2018.

This report provides an overview and assessment of TPG's operational and financial performance, together with an analysis of company strategies.

Companies covered in this report include:

TPG Telecom, iiNet, AAPT, B Digital, Pipe Networks, Soul, Comindico, Vocus, M2, Nextgen Network, Amcom